12:57 pm, September 30, 2014
GLOBAL alternative asset manager The Carlyle Group has entered into an agreement with GIC, Singapore’s sovereign wealth fund, to become a co-shareholder in the RAC.
Following the transaction, Carlyle and GIC will jointly own a majority stake in the business with RAC management holding the remaining shares. The investment is expected to be completed by the end of the year.
This transaction completes a strategic review undertaken by Carlyle.
RAC is the second-largest roadside assistance provider in the UK and has around eight million roadside members. It has a unique heritage going back 117 years and is the UK’s most trusted automotive service brand.
Since Carlyle acquired the RAC in 2011, it has invested more than £40m into the business to strengthen the operational capabilities and reinvigorate the brand.
Carlyle and the management team have also positioned the RAC for future growth through the upgrading of its IT systems and sustained investment in its brand and the development of a database to enable enhanced sales and marketing.
These transformational investments have helped RAC increase net revenue from £433m to £485m.
Andrew Burgess, managing director, the Carlyle Group, said: ‘We are delighted to welcome GIC as a partner in RAC. GIC is a high calibre, long-term investor that shares Carlyle’s vision for RAC.’
